Discover How To Buy A New Car With Bad Credit

Millions of Americans were hit hard by the downturn in the economy and many, for the very first time in their lives, have ended up with bad credit. While many lenders have come under public scrutiny for past lending practices and are now being extra careful who they will extend credit to, manufacturers and car dealerships don’t have that luxury; they were hit as hard as their customers.

This light at the end of the tunnel for consumers with bad credit means dealerships and automakers have to be willing to take greater risks if they want to generate income; they have bills to pay just like the rest of us and it’s pretty hard if there’s no money coming in.

When you request your free bad credit price quote our database will help you play the number’s game to locate all of the auto dealers in who specialize in working with individuals with bad credit. When you are able to easily search over a large area for a bad credit car loans, you substantially increase your odds of getting behind the wheel of a new automobile.

When you locate available bad credit auto loans, expect to pay a higher rate of interest, possibly a substantially larger down payment and you could have a hard time obtaining new auto insurance.

This is why it’s critical to regularly check your credit report; your credit might not be quite as bad as you think or there could be mistakes on your credit report that are dragging your score down. Just a few points could mean all the difference in the world on your loan terms.

Documentation A Dealership Will Need

Here is the documentation you’ll need to start gathering, because once you find a bad credit auto loan the dealership will need this information:

  • Verification of employment (minimum of six months) via pay stubs and if possible a W-2. If you are in the process of changing employers you will need to provide a copy of the original offer reflecting what you’re salary will be along with the date you will start.
  • A mix of personal and business references, minimum of six, along with how they can be contacted.
  • If you are attending school you will need to provide verification of your status and the date you should be graduating. If you have recently graduated from college, you will need to provide that documentation.
  • Copies of your credit report.
  • If you currently own an automobile you should bring verification of collision coverage.
  • Hard copies of your free price quotes, emails confirming the agreement and any other information you received during your negotiations with the dealer. You want to avoid any misunderstandings when you meet with them.

How A Co-Signer Could Help You Get Better Terms & Help You Rebuild Your Credit

A great way to enable you to start rebuilding a good credit record while at the same time driving a new car, can happen if a close friend or family member with good credit co-signs on the car loan; benefiting you in several ways:

  • The lender may be reassured that you won’t default on the loan and consequently could be more agreeable to offering you better loan terms.
  • This would also help you to start improving your credit score, by making your car payments on time each month. The loan will be reflected on both yours and your co-signer’s credit report; though the only part the co-signer pays is the role of guarantor. In other words, if you don’t pay, then they have to; so make sure that you make your payments on time.

Now that you’ve seen how you could buy a car with bad credit, simply avail yourself of the opportunity to obtain free, no obligation bad credit price quotes and be connected with the available dealers who want to help you restore your credit by offering a bad credit car loan.